Pubali Bank has forayed into online banking by automating 100 branches all at once, a move of massive proportions in Bangladesh.
It is unique that the bank has done so by developing its own software that costs much less than an imported version.
“With the move, we have the largest online banking network in Bangladesh. Now we’ll be able to provide cost-effective and efficient services to customers,” said Helal Ahmed Chowdhury, managing director of Pubali Bank.
As part of its plan to invest Tk 120 crore to provide IT-enabled services to clients, Pubali will unveil “anywhere banking” from 100-interconnected branches across the country today. A group of nearly 50 employees worked for three years to develop the Pubali Bank Integrated Software (PBIS).
Pubali has created a history by crafting its own software for online banking. Of the 30 private banks, most have used foreign software, and counted as high as Tk 100 crore, for the purpose.
Currently, the bank has 387 branches, a leader by far among the private banks.
Despite its presence across Bangladesh, the bank could not compete with other private banks due to its poor
automation system.
“We now hope we can stay in the competition and retain our customers,” said Chowdhury, who is with the bank for over three decades. Pubali has spent Tk 22 crore to automate the 100 branches, along with establishing a data and disaster recovery centre.
“Our cost was nearly a fifth of using the imported software. It has been tested and running quite well,” said Mohammad Ali, chief technical officer of the bank.
To meet international standards and acceptability, Ali said, the bank signed an agreement with Pricewaterhouse-Coopers to verify it.
According to the managing director, the bank will automate all of its branches by 2012. In addition, 100 ATMs will be set up by next year. The bank has a paid-up capital of Tk 497 crore. At the end of the third quarter (September) of 2010, the bank’s net profit after taxes stood at Tk 248 crore.
